Sustainable Finance Questionnaire 2020

Sustainable Finance

Sustainable finance is fast becoming a separate asset class globally. Under the umbrella of sustainable finance, Environmental, Social and Governance (ESG) practices are growing rapidly as a differentiator within the banking and financial services sector.

Data is at the heart of sustainable finance, and more accurate data collection is critical for further growth of sustainable finance. It is not only important for customers to know more transparently about banking and financial products and services, but it is also critical for regulators and policy makers to develop their respective regulatory and policy interventions.

The banking and financial services sector has a key role in meeting the UN Sustainable Development Goals (SDGs) by 2030, which is through bridging the funding gap. European Union’s Sustainable Finance Taxonomy and the Recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD), and so many other global initiatives are empowering the banking and financial services sector to play its role. Most recently, the Bank of England has taken steps to stress-test the financial sector for climate-related risks.

In view of the above, this questionnaire is intended to help begin the process of having a thriving sustainable banking and finance sector in Bahrain.

THE QUESTIONNAIRE

The questionnaire seeks to collect quantitative and qualitative information. It is organized in five different parts (from A through E), and each part focuses on a thematic area.

Your responses will help assess the current state of sustainable finance in Bahrain. They will also inform a policy dialogue for likely measures to be taken to help increase the size of sustainable finance in Bahrain.

Full Name

Email

Phone

Company Name

Part A - Strategy and Policy Framework

1. Has your institution incorporated the below in its corporate strategy?

a) Sustainable Development Goals

YesNo

b) Sustainability-related risks (e.g. climate risks)

YesNo

c) Environmental, Social and Governance factors ("ESG")

YesNo

2. Has your institution established a framework or policy to track and monitor progress against the below?

Yes

No

a) Sustainable Development Goals

YesNo

b) Sustainability-related risks (e.g. climate risks)

YesNo

c) Environmental, Social and Governance factors ("ESG")

YesNo

3. Have any board and/or management-level committees been set up to assess and/or manage sustainability and/or climate related risks and opportunities?

4. Has your institution adopted ESG risk scoring in its risk management policies and practices?

YesNo

5. If your institution has adopted ESG risk scoring, what are the Key Risk Indicators that are used?

6. If your institution has adopted ESG risk scoring, how are appropriate thresholds set as part of the firm’s risk appetite?

7. If your institution has not adopted ESG risk scoring, when do you plan to do so?

8. How many of the SDGs are connected with your financing and investment portfolio (your own balance sheet)? Please specify the SDGs.

9. What initiatives has your institution undertaken regarding the adopted SDGs, climate related risks and ESG, if any? Please specify.

Part B - Existing Exposure, Decision Making & Innovation

10. Please provide the following information as of 30 June 2020:Download the Excel sheet to be filled by clicking on this link.
Upload the filled Excel sheet once done.

11. Does your institution allocate any funds for climate-related projects (e.g. adaptation and/or mitigation)? If yes, please specify separately.

12. If you have answered 'yes' to question 11 above, what is the amount and percentage of the portfolio allocated?

13. If you have answered 'yes' to question 11 above, how did you conduct impact analysis?

14. Does your institution consider environmental factors and sustainable practices in managing your business/operations (e.g. using grey water, minimizing paper utilization, recycling)?

YesNo

15. If you have answered 'yes' to question 14, please share examples of targets and measures put in place.

16. Do you monitor energy efficiency of your premises/operations? Please share examples, if any.

17. Do you consider energy efficiency in your investment/financing decisions (e.g. does the credit committee factor in these considerations)? Please share examples, if any.

18. What products and services are being planned to satisfy the growing demand for sustainable products (assets / liabilities / services)?

19. If you do not currently offer sustainable products (assets / liabilities / services), is this something that you plan to offer, and if so, when?

Part C - Initiatives and Programmes

20. What training and employee development programmes are in place to increase employees' awareness and engagement in sustainable development activities/programmes?

21. What are the institution's initiatives to create sustainability awareness amongst its clients/customers and society?

22. Do you have a policy or initiatives on promoting gender equality and women empowerment?

23. What is the number and percentage of women in the board and executive management in your institution? Please report separately with regard to the women on the board and in the executive management. Please report the same for your affiliates, if applicable.

24. What is the male-to-female employee ratio, broken down by various organizational levels (C-suite, mid-to-senior management and all others)?

25. What is the percentage of total compensation for male employees compared to the percentage of total compensation for female employees?

Part D - Challenges and Incentives

26. What types of incentives/pre-requisites would be required to encourage financial institutions to invest in sustainable development projects (climate related projects, carbon mitigation/adaptation projects and other social projects)? Please rank below:

a. Legislative support - lower risk weights for such projects

LowMediumHigh

b. Financial incentives (offtakes, credit enhancements)

LowMediumHigh

c. Establishing regulatory guidelines

LowMediumHigh

d. Availability of specialized resources (human capital and technical knowledge)

LowMediumHigh

e. Any other suggestions? Please specify here:

27. What do you consider to be the major challenges to investing in such sustainable development projects? Please rank below:

a. Lack of regulations

LowMediumHigh

b. High costs (development, feasibility, transaction costs)

LowMediumHigh

c. Lack of technical knowledge in the fields

LowMediumHigh

d. Challenges in risk evaluation

LowMediumHigh

e. Low returns / inadequate commercial benefit

LowMediumHigh

f. Unavailability of profitable sustainable development projects

LowMediumHigh

g. Any other challenge? Please specify here:

Part E - Disclosure and Stress Testing

28. Does your institution make any sustainability and climate-finance-related disclosures? If so, please provide samples of published disclosures.

29. Do you incorporate sustainability and/or climate-related risk in your regular stress testing?

30. If yes, please outline how currently you take account of climate-related risks as part of your ICAAP and stress testing programme?

31. If not, when do you plan to do so?

Sustainable Finance Questionnaire 2020

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